Weis Markets on Friday reported its 14th consecutive quarter of comparable-store sales gains, but said net income for the third quarter was down by 58.1%, compared to a year ago.
The Sunbury, Pa.-based retailer reported comp-store sales gains of 1.5% for the 13-week period, which ended Sept. 30. Total sales were up 15%, to $854.3 million, compared with the year-ago results, reflecting the acquisition last year of 38 Food Lion stores in Maryland, Delaware and Virginia, plus the acquisition of one Nell’s Family Market store in Pennsylvania.
Net income for the third quarter was $4.4 million, compared with $10.6 million in the year-ago period. Weis attributed the decline to aggressive promotional and pricing programs; price deflation in produce, deli/foodservice, bakery and seafood; and inventory management challenges at some of the acquired stores.
For the 39-week, year-to-date period, Weis said its net income fell 24.5%, to $34.8 million, on a 16.8% increase in sales, to $2.6 billion, compared with year-ago results. Comparable-store sales through the first three quarters were up 1.6%.
Weis Markets operates 204 supermarkets in seven Mid-Atlantic states.